On Holding (ONON) closed the most recent trading day at $46.00, moving +2.06% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.
The stock of running-shoe and apparel company has fallen by 6.3% in the past month, lagging the Retail-Wholesale sector's gain of 3.96% and the S&P 500's gain of 1.57%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company is predicted to post an EPS of $0.26, indicating a 31.58% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $894.52 million, reflecting a 29.41% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.96 per share and a revenue of $3.72 billion, indicating changes of -12.73% and 0%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. On Holding is currently sporting a Zacks Rank of #4 (Sell).
Looking at valuation, On Holding is presently trading at a Forward P/E ratio of 26.43. This expresses a premium compared to the average Forward P/E of 20.12 of its industry.
We can additionally observe that ONON currently boasts a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 2.1 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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On Holding AG (ONON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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